Legal Question in Real Estate Law in Kansas

Re: Nonprofit ownership of real property

If you are to borrow money to purchase the land and improvements, than the lender will want "someone" to be responsible for the note. In the eyes of the law a corporation (even anonprofit one)is a person, and therefore "someone" who could be responsible for the note. If no corporation is in existence, than a live person(s) would have to be responsible.

You did not indicate why you do not want to have your church as a non-profit corporation, nor just to form one to own the land and building. Beyond the demand of the lender, you may wish to consider liability exposure for injuries. If no corporation owns the building, and a visitor gets hurt, then the trustess and possibly every member of the church could be jointly liable to the injured person.

You also did not say what type of church yours is. If you are part of a large denomination, then the denomination may be able to take title to the property and lease it to the local church (you). Many Protestant churches have operated this way for more than a century.

It is possible for an unincoprated church to take title to land, if it is purchased outright, and you do not obtain title insurance. You could still get a Title Prospectus. If you are not able to purchase the land outright, then I do not know how else you might obtain the property without incorporating. But, you could shop for a lender who will loan under those circumstances, and prove me wrong.

Good Luck,

Tony Smith